The Least Squares Method Requires That the Variance of the Error

question 30

Multiple Choice

The least squares method requires that the variance of the error variable e is a constant no matter what the value of x is. When this requirement is violated, the condition is called:

• A)heteroscedasticity.
• B)homoscedasticity.
• C)influential observation.
• D)non-independence of e .

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Definitions:

Acreage Allotment

A government policy that limits the amount of land that can be used for certain agricultural crops, often aimed at controlling supply and stabilizing market prices.

Agricultural Products

Items that originate from farming and the cultivation of the land, including crops, livestock, and raw materials.

Food For Peace

A U.S. government program that provides food assistance abroad to help support economic stability and encourage peace.

Agricultural Land

Land designated for the primary purpose of agricultural production, including cultivation of crops and livestock rearing.